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Ex-ante evaluation of the consumers' preference for the 4th generation mobile communications service

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  • Kwak, So-Yoon
  • Yoo, Seung-Hoon

Abstract

Research about next-generation mobile communications (MCs) technology has become an issue in these days since MCs bear a close relationship to our daily lives. The third generation (3G) MCs technology is now evolving into the fourth generation (4G) MCs technology. An initial analysis of potential consumer preferences for the technology is essential to ensure successful strategies and changes. This paper attempts to apply a choice experiment to evaluating consumers' willingness to pay (WTP) for each attributes of the 4G technology. The experiment encompasses five attributes: data rates, the quality of communications service, the number of broadcasting channels, video-on-demand (VOD) service, and supplementary services. We consider the trade-offs between the price and attributes of the 4G for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. The results indicate that the average MWTP for the improved communications service is KRW 4443 (USD 4.03) and the average MWTP for one more broadcasting channel is KRW 67 (USD 0.06). The average MWTPs for VOD and supplementary services is KRW 1932 (USD 1.75) and KRW 1601 (USD 1.45), respectively.

Suggested Citation

  • Kwak, So-Yoon & Yoo, Seung-Hoon, 2012. "Ex-ante evaluation of the consumers' preference for the 4th generation mobile communications service," Technological Forecasting and Social Change, Elsevier, vol. 79(7), pages 1312-1318.
    • Handle: RePEc:eee:tefoso:v:79:y:2012:i:7:p:1312-1318
    DOI: 10.1016/j.techfore.2012.03.007
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    Cited by:

    1. Massimo Florio & Francesco Giffoni & Gelsomina Catalano, 2020. "Should governments fund basic science? Evidence from a willingness-to-pay experiment in five universities," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 23(1), pages 16-33, January.
    2. Shieh, Lon-Fon & Chang, Tien-Hsiang & Fu, Hsin-Pin & Lin, Sheng-Wei & Chen, Ying-Yen, 2014. "Analyzing the factors that affect the adoption of mobile services in Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 80-88.
    3. Orhan Dagli & Glenn P. Jenkins, 2015. "Consumer Preferences for Improvements in Mobile Telecommunication Services," Development Discussion Papers 2015-05, JDI Executive Programs.
    4. Hong, Areum & Nam, Changi & Kim, Seongcheol, 2016. "Estimating the potential increase in consumer welfare from the introduction of Super Wi-Fi services in Korea," Telecommunications Policy, Elsevier, vol. 40(10), pages 935-944.
    5. Kim, Jiwhan & Nam, Changi & Ryu, Min Ho, 2017. "What do consumers prefer for music streaming services?: A comparative study between Korea and US," Telecommunications Policy, Elsevier, vol. 41(4), pages 263-272.
    6. Jun, Seung-Pyo & Park, Do-Hyung & Yeom, Jaeho, 2014. "The possibility of using search traffic information to explore consumer product attitudes and forecast consumer preference," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 237-253.

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